Coliving — the practice of living in a shared community space with other people — has seen a surge in popularity in recent years. As a result, coliving operators, who manage these shared living spaces, are facing a rapidly changing landscape. In this article, we will explore ten trends that are likely to impact coliving operators in 2023.
#1 Continued growth in popularity.
Coliving has become an increasingly attractive option for many people, particularly young professionals and digital nomads. This trend is expected to continue in 2023, with more and more people looking for affordable and flexible living arrangements.
#2 An emphasis on sustainability.
As awareness about the environmental impact of the way we live grows, coliving operators are likely to face increasing pressure to offer sustainable options. This could mean investing in renewable energy sources, implementing recycling programs, and providing access to sustainable transportation options.
#3 The rise of hybrid coliving spaces.
While traditional coliving spaces typically involve sharing a living space with multiple people, the trend in 2023 is expected to be towards more flexible arrangements. This could include hybrid spaces that offer a mix of private and shared living areas, as well as options for short-term stays and long-term rentals.
#4 The rise of technology.
As technology continues to advance, coliving operators will need to find ways to integrate it into their offerings. This could include providing access to high-speed internet and smart home technology using technology to facilitate communication and community-building among residents. (Spoiler — if you are looking, check out our platform, Obeyo)
#5 An increase in regulation.
As the coliving industry grows, it is likely to face increased scrutiny and regulation from government agencies. Coliving operators will need to be prepared to navigate these regulations, which could include requirements for safety and accessibility, as well as limits on the number of people who can live in a shared space.
#6 The emergence of new business models.
The coliving industry is still relatively young, and as such, there is still a lot of room for innovation and experimentation. In 2023, we are likely to see the emergence of new business models for coliving, including community-owned spaces, subscription-based models, and more.
#7 Inflation and increasing operational costs.
Inflation and disrupted supply chains have already put quite a strain on coliving operators over the last few months and years. 2023 will likely see further pressure on the margins for coliving operators, so that many will be looking for ways to open up additional revenue streams, e.g. by enlarging their membership base to include non-residents as well. On the resident side, there will also be a higher focus on affordability — which will drive additional demand.
#8 Institutional investments leading to more mergers and acquisitions.
The time to go big or go home in coliving is now. With additional institutional investors ready to invest in coliving assets, we will see more players coming online. With this demand, however, comes further consolidation in the market, as those that are not ready or prepared to adopt to the new market environments, will become interesting acquisition opportunities for bigger players.
#9 Increasing competition.
Over the last few months, we have seen a significant number of new operators coming online and opening their doors. 2023 will be the year in which coliving bed availabilities will start going through the roof. This will lead to increased competition and the need to distinguish yourself, for example through an outstanding community and living experience.
#10 Experience Era.
The experience Era keeps disrupting major industries. 2023 will be the year when the residential living will go through a comprehensive disruption. The signs are all there: Gen z pushing into the rental market, flexible lifestyles are on the rise, and one-touch experience becoming the norm. Therefore, creating outstanding living experiences will become the new focus in residential real estate — pushing concepts like coliving even deeper into the mainstream.
Make 2023 your year!
Overall, the coliving and flexible living industry are set to continue its rapid growth in 2023. As a result, coliving operators will need to be prepared for a variety of challenges and opportunities, from the rise of sustainability and technology to increased regulation and competition. By staying on top of these trends, coliving operators can position themselves for success in the coming year.
- About Michael: Michael is co-founder and CEO at Obeyo. Passionate about connecting people, he loves to explore ideas at the intersection between community, shared living, and technology. Feel free to connect with him on LinkedIn.
- About Obeyo: Obeyo is the platform for shared living operations to build and manage thriving residential communities through our unified dashboard, branded resident apps, and a community building engine.